It's a quadruple balance sheet problem.

"The Indian consumer has traditionally been the most dependable source of demand whenever the economy lost momentum," wrote N Rajadhyaksha. The previous slowdown following the financial crisis of 2008 resulted in high inflation and current account deficit because supply was unable to meet the strong demand fueled by government spending. This slowdown is because demand is based on the top 100 million consumers and that has reached a plateau, said member of the Prime Minister's Economic Advisory Council Rathin Roy. We will not be like South Korea or China said Roy, "We will be Brazil. We will be South Africa. We will be a middle-income country with large numbers of people in poverty seeing rising crimes." You can avoid the middle-income trap, but once trapped there is no escape. Roy also said that India is facing a silent fiscal crisis because growth in tax revenue will be weak due weak wage growth and weak consumer spending. "Food accounts for a little more than a quarter of personal final consumer expenditure (PFCE) in India at constant prices." Transport is 17.02% of PFCE, utilities account for 14.11%, clothing and footwear 6.4%, health 4.8% and education 3.9%. The economy is like the Hollywood movie 'Speed', wrote Jethmalani and Pengonda. "The economic growth is dropping speed and a last-ditch effort to defuse the fiscal bomb is on as the government is hawking five of its own companies to strategic investors to achieve its divestment goals." However, it is doubtful that the sale will happen in this financial year (FY) so "the total fiscal deficit including borrowings of public enterprises came to a massive 6.3% of GDP in FY19", said Nikhil Gupta. In addition to cyclical and structural problems "A new renting and sharing economy has sprouted, effects of which have started to show up." These are the millennials. "Studies show that millennials who are not willing to commit on EMI (equated monthly installments) towards buying an automobile instead would prefer to have Ola, Uber and everything else or take the metro." Retail inflation quickened to 4.62% last month, "Yet core inflation which strips out volatile commodity prices, slumped to 3.4% , the lowest since the current price series began in 2012," wrote Andy Mukherjee. All this while we have been hearing about the 'twin balance sheet problem', but the addition of weak demand makes it a "triple balance sheet problem", according to Sonal Verma. Even the blue chip Sahpoorji Pallonji group is on the verge of default, wrote Mukherjee. The Finance Minister assured the nation that India is not in recession. That she is having to say that is itself terrifying. The trust deficit is much more than the fiscal deficit. Which makes it a quadruple balance sheet problem.